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To: A CA Guy

Talk about irresponsible! Three or four years ago, me and a friend of mine were going to buy a house together as a rental property to be flipped some years later. Problem was, he didn't have good enough credit to make the interest rate worthwhile. I, on the other hand, had excellent credit, but I didn't make enough money to qualify for the interest rate we were hoping for. I was then offered a "stated" loan, in which they would offer the property on my own credit, but at far more than I could afford. So I signed the paperwork, and low and behold, the bank went for it. There is no way I could have kept up the payments on my own, but the bank was willing to cut me a loan anyways. In the end, I turned down the loan. Can you imagine how many people are out there who actually went through with it??!?! Believe me, there will be a HUGE price to pay for all these crazy loans (and many more I'm not even familiar with)--GGG


10 posted on 09/04/2006 9:51:44 PM PDT by GodGunsGuts
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To: GodGunsGuts
The reason that went through was the banks need loans (numbers showing they are doing good business) and the people making the loans get salaries and commissions from your loan.

I remember a loan agent who gave an unsecured 10k loan to a friend of his and his friend the next week got busted with that money in a drug deal.
That loan agent got fired.

People like Appraisers have to pass and follow USPAP which has lots of legal and financial consequences.
I don't know that loan agents have equal consequences, though they may have to be real estate agents these days. That I don't know.
12 posted on 09/04/2006 9:58:13 PM PDT by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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